The crypto exchange announced a significant expansion of its OTC trading platform to address the needs of its wealthy customers.
Kraken, one of the world’s top cryptocurrency exchanges, made an official announced on Monday an expansion of its over-the-counter (OTC) trading platform to allow the execution of block transactions for its clients.
“We offer deeper liquidity and private, personalized service to institutions and high net-worth individuals needing to fill large orders,” US-based Kraken said in its official blog post.
A block trade involves wholesale buying or selling of assets at a very large scale, with the price sometimes decided between two parties outside of an open market to avoid high volatility and prevent the asset’s market price from being affected. Because of the significant size of such block trades, they are usually performed by large market players like hedge funds or institutional investors.
The new OTC desk will enable users to trade blocks of $100,000, 100,000,000 euro, or 2,000 Bitcoin. The exchange commits to providing such customers “with execution and settlement services that are discrete, secure, and ultra-competitive,” according to Kraken.
Although the minimum order size is set at $100,000, the exchange noted that “exceptions can be discussed on a case by case basis.”
As for the Kraken OTC listing, large block transactions can be carried out in both fiat and virtual currencies. The new service will be available with three fiat currencies (US dollars, euro, and Japanese yen) and 17 cryptocurrencies, among them Bitcoin, Ether, Bitcoin Cash, Ether Classic, Ripple, Litecoin, Monero, Dash, Zcash, and Dogecoin.
Kraken is not the only digital assets exchange looking to capitalize on demand for OTC cryptocurrency trading. In June, Korean operator Huobi also announced the launch of a similar OTC trading service.